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Forecasting
Uses of Forecasts
Forecasts help managers plan the productive system and also
help them plan the use of the system. Planning the productive
system involves long-range plans regarding the type of
products and services to offer, what facilities and equipments
to have, where to locate and the like. Planning the use of the
system refers to short-range and intermediate range planning
involving tasks such as planning inventory and workforce
levels, planning purchasing and production, scheduling and
budgeting.
Types of Forecasts
Technological forecasts: Concerned with rates of
technological progress
Economic forecasts: Statements of expected
future business conditions.
Demand forecasts: Projections of demand for a
company's products or services throughout some
future period.
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Quantitative Methods
Time series models use a series of past data to make a
Causal models
Trend projection
Linear regression analysis